An offshore company is a legal entity established in a tax haven or offshore financial center, being protected by specific legislation which guarantees a status of partial or full tax exemption. In some jurisdictions, offshore companies may trade or do business only outside of the country in order to be tax exempt, while in others companies may do local and international business.
Most offshore companies pay no local taxes on the income derived from offshore operations, i.e. from activities outside of the jurisdiction of company formation. These offshore companies include RAK, JAFZA and BVI and others.
Registrars in most offshore jurisdictions do not disclose information about directors, shareholders and beneficiaries of offshore companies. Thus, the underlying principal may carry out all relevant transactions in the name of an offshore company while remaining anonymous. It is important to note that this applies to legitimate operations only.
In the international business context, it is usually the laws of the jurisdiction of incorporation that are applied, rather than those, where the company is being sued. Many offshore jurisdictions are renowned for their favorable asset protection laws. Complementing an offshore company with an offshore banking facilities, protects company’s assets even further.
The compliance reporting requirements for offshore companies are limited, especially in comparison to companies, registered in onshore jurisdictions. Most offshore IBC companies are not required to file annual reports and accounts in the jurisdiction of the company formation. Instead, local authorities charge a flat annual license fee, which is insignificant in comparison to reporting expenses and taxes in onshore jurisdictions.
With limited reporting requirements, offshore companies generally have lower maintenance and operating fees. The cost of compliance, preparation of accounts and auditing in on-shore countries is often considerable while offshore companies save on these particular expenses.
There needs to be a registered agent that is approved by the authority and is eligible to form an offshore company. The agent should be located either in the free zone itself or in the UAE.
We are registered agent and one of the market leaders in offshore business consultancy offering solutions to customers looking to reduce taxes, protect assets and limit liabilities.
While associating with HLB Hamt, you get the combination of our in-depth local expertise and extensive experience, which gives us the ability to precisely understand the unique needs of your business. We are thus, able to recommend the best possible options and ensure that your business is set up with minimal hassles and effort.
We undertake the entire task ,so that you are free to concentrate on the bigger picture – your business.